The Board of Directors of the Financial Regulatory Authority (FRA) has issued a decision to abolish the requirement that obligates insurance and reinsurance brokerage firms to open at least two branches within three years of launching operations as a licensing prerequisite.
In a statement, the FRA said, “Practical implementation demonstrated that brokerage operations do not always require a physical geographic presence across multiple branches—especially given technological advancements and diversified service delivery channels. Enforcing mandatory physical expansion within a strict timeline imposed administrative and financial burdens that did not necessarily align with each company’s business model or operational needs.”
FRA Chairman Dr Islam Azzam added that eliminating the requirement reflects FRA’s commitment to maintaining open channels with market players and adapting to practical market realities. The move grants companies greater operational flexibility to allocate resources and execute expansion plans according to client demand and individual business models, without compromising regulatory oversight standards.
He emphasised that regulatory updates consistently aim to strike a balance between facilitating market growth and maintaining robust oversight. Adapting to market developments across the insurance sector and non-banking financial services fosters market prosperity while safeguarding consumer rights.